August 7, 2003

The CPP Investment Board announced today its results for the three-month period ending June 30, 2003. Assets available to the Canada Pension Plan earned $3.1 billion, producing a rate of return of 5.5 percent for the period. This compares favourably with a decline in value in the previous quarter of $1.2 billion, or a negative return of 2.3 percent.

The consolidated CPP portfolio, which includes contributions to the CPP net of benefits paid, grew to $61.6 billion, an increase of $6.0 billion in the three-month period.

At June 30, 2003 the assets of the Canada Pension Plan consisted of $38.0 billion in fixed income securities administered by the Department of Finance in Ottawa and $23.6 billion in equities and real estate managed by the CPP Investment Board in Toronto.

The fixed income securities, representing approximately 62 percent of the consolidated CPP portfolio, consisted of $30.8 billion in federal and provincial government bonds and $7.2 billion in an interest bearing cash deposit. These assets earned $1.4 billion for a return of 4.0 percent.

The CPP Investment Board portfolio, representing approximately 38 percent of the consolidated CPP portfolio, consisted of 91 percent public equities, 6 percent private equities and 3 percent real estate and cash. These assets earned $1.7 billion for a return of 8.6 percent. The CPP Investment Board invests a portion of the CPP assets while taking into account the total CPP portfolio.

”The positive returns on Canada Pension Plan assets during the first quarter were driven by both declining interest rates and the strong rebound in global equity markets,” said John MacNaughton, President and CEO of the CPP Investment Board. “While our first quarter results are encouraging, Canadians should note that what matters isn’t how we perform over any three month period, but how we perform over the next 10 to 20 years.”

”Our program to build a diversified portfolio is on track,” MacNaughton said. “We are continuing our strategy of investing in a broader range of asset classes that over time will deliver the higher risk adjusted returns needed to help deliver on the CPP pension promise for 16 million Canadians.”



Based on actuarial projections, CPP contributions are expected to exceed benefits until 2021, providing an 18-year period before a portion of the investment income is needed to help pay CPP benefits.

The annual report of the CPP Investment Board is available at 
http://www.cppib.ca/en/our-performance/financial-results.html.

The CPP Investment Board is a crown corporation created by an Act of Parliament in December 1997. It invests in capital markets the funds not needed by the Canada Pension Plan to pay current pensions. Cash flows are currently invested in equities and real estate to balance the cash and bonds owned by the Canada Pension Plan. By increasing the long-term value of funds, the CPP Investment Board will help the Canada Pension Plan to keep its pension promise to Canadians. Based in Toronto, the CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. Its fiscal year is from April 1 to March 31. For more information about the CPP Investment Board, visit www.cppib.ca.

A teleconference has been scheduled for August 7, 2003 at 11 a.m. EDT to discuss these results. Media representatives that would like to participate, please contact Lisa Thompson at 416-868-4682 or lthompson@cppib.ca. The teleconference will also be webcast at www.cppib.ca.     

For further information contact:

Ian Dale

Vice President

Communications and Stakeholder Relations

416-868-4086

idale@cppib.ca.

Or

John Cappelletti

Manager

Communications and Stakeholder Relations

416-868-0308

jcappelletti@cppib.ca  

August 7, 2003

The CPP Investment Board announced today its results for the three-month period ending June 30, 2003. Assets available to the Canada Pension Plan earned $3.1 billion, producing a rate of return of 5.5 percent for the period. This compares favourably with a decline in value in the previous quarter of $1.2 billion, or a negative return of 2.3 percent.

The consolidated CPP portfolio, which includes contributions to the CPP net of benefits paid, grew to $61.6 billion, an increase of $6.0 billion in the three-month period.

At June 30, 2003 the assets of the Canada Pension Plan consisted of $38.0 billion in fixed income securities administered by the Department of Finance in Ottawa and $23.6 billion in equities and real estate managed by the CPP Investment Board in Toronto.

The fixed income securities, representing approximately 62 percent of the consolidated CPP portfolio, consisted of $30.8 billion in federal and provincial government bonds and $7.2 billion in an interest bearing cash deposit. These assets earned $1.4 billion for a return of 4.0 percent.

The CPP Investment Board portfolio, representing approximately 38 percent of the consolidated CPP portfolio, consisted of 91 percent public equities, 6 percent private equities and 3 percent real estate and cash. These assets earned $1.7 billion for a return of 8.6 percent. The CPP Investment Board invests a portion of the CPP assets while taking into account the total CPP portfolio.

"The positive returns on Canada Pension Plan assets during the first quarter were driven by both declining interest rates and the strong rebound in global equity markets," said John MacNaughton, President and CEO of the CPP Investment Board. "While our first quarter results are encouraging, Canadians should note that what matters isn't how we perform over any three month period, but how we perform over the next 10 to 20 years."

"Our program to build a diversified portfolio is on track," MacNaughton said. "We are continuing our strategy of investing in a broader range of asset classes that over time will deliver the higher risk adjusted returns needed to help deliver on the CPP pension promise for 16 million Canadians."



Based on actuarial projections, CPP contributions are expected to exceed benefits until 2021, providing an 18-year period before a portion of the investment income is needed to help pay CPP benefits.

The annual report of the CPP Investment Board is available at 
http://www.cppib.ca/en/our-performance/financial-results.html.

The CPP Investment Board is a crown corporation created by an Act of Parliament in December 1997. It invests in capital markets the funds not needed by the Canada Pension Plan to pay current pensions. Cash flows are currently invested in equities and real estate to balance the cash and bonds owned by the Canada Pension Plan. By increasing the long-term value of funds, the CPP Investment Board will help the Canada Pension Plan to keep its pension promise to Canadians. Based in Toronto, the CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm's length from governments. Its fiscal year is from April 1 to March 31. For more information about the CPP Investment Board, visit www.cppib.ca.

A teleconference has been scheduled for August 7, 2003 at 11 a.m. EDT to discuss these results. Media representatives that would like to participate, please contact Lisa Thompson at 416-868-4682 or lthompson@cppib.ca. The teleconference will also be webcast at www.cppib.ca.     

For further information contact:

Ian Dale

Vice President

Communications and Stakeholder Relations

416-868-4086

idale@cppib.ca.

Or

John Cappelletti

Manager

Communications and Stakeholder Relations

416-868-0308

jcappelletti@cppib.ca